Borregaard (BRG) Pre-Close Call summary

Executive summary

• Sales volumes in BioSolutions are expected to reach 330,000 tons in 2025, with agriculture as the main growth driver and a positive product mix effect.

• BioMaterials sales volume forecast for 2025 is 150,000 tons, at the low end of guidance due to tariff and trade war uncertainties, but with a higher share of specialized grades.

• Fine Chemicals faces lower bioethanol prices due to increased supply, with volumes expected to rise compared to 2024.

Trading performance and revenue trends

• Q2 BioSolutions sales volume is expected at 85,000 tons, seasonally higher but with a less favorable product mix.

• Average price increase in BioSolutions was mainly due to product mix, not underlying price hikes.

• BioMaterials average price in sales currency is expected to be 8%-10% higher in H1 2025 versus H1 2024.

Profitability and margins

• Strong profit uplift in agriculture is driven by unique, green product properties and biocontrol focus.

• Environmental investments, such as electrification, are reducing energy costs and CO2 emissions.

• Higher spot energy prices are largely offset by reduced energy consumption from recent investments.